What is departmentation? explain various methods of departmentation?
Answers
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Departmentation is a process of dividing the large monolithic functional organization into smaller and flexible administrative units.
Methods of Departmentation :-
1) Departmentation by Function -> this is the simplest and most prevalent basis of departmentation. Under this all the functions of similar nature are divided in different units which are called departments.
2) Departmentation by location or the place -> Departmentation by location or place means,"grouping of activities by area or territory is common in enterprises operating over wide geographic areas."
3) Departmentation by processes -> in this process involved in production or various types of equipment's used are taken as basis of departmentation.
4) Departmentation by products -> product departmentation involves the grouping together of all the activities necessary to manufacture a product or product line.
5) departmentation by customer -> grouping of activities around marketing channels involves making an organization structure reflect the ways an organization reaches the ultimate customer.
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